cognitivescale com | 855 505 5001 Executive Guide to AI | 1 AUGMENTED INTELLIGENCE EXECUTIVE GUIDE TO AI 10 QUESTIONS ABOUT PRINCIPAL AUTHORS Matt Sanchez CTO Founder CognitiveScale Akshay Sabhikhi.cognitivescale com | 855 505 5001 Executive Guide to AI | 1 AUGMENTED INTELLIGENCE EXECUTIVE GUIDE TO AI 10 QUESTIONS ABOUT PRINCIPAL AUTHORS Matt Sanchez CTO Founder CognitiveScale Akshay Sabhikhi.
10 QUEST IONS ABOUT AUGMENTED INTELLIGENCE E X E C UT IVE G UIDE TO AI P RI N C I PA L AU T HO R S : Akshay Sabhikhi Chief Executive Officer CognitiveScale Matt Sanchez CTO & Founder CognitiveScale Executive Guide to AI | “We are moving from a mobile-first to an AI-first world.” “Human-AI partnership can help solve society’s challenges.” “Cognitive Computing will impact every decision in five years.” - Sundar Pichai CEO, Google - Satya Nadella CEO, Microsoft - Ginny Rometty CEO, IBM Executive Guide to AI | CONTENT WHAT IS AUGMENTED INTELLIGENCE? Augmented Intelligence is a subset of Artificial Intelligence technology that emulates and extends human cognitive abilities in software, such as memory and sequencing, perception, anticipation, problem solving, and decision making WHY ARE AUGMENTED INTELLIGENCE SYSTEMS SO EFFECTIVE? HOW DOES A BUSINESS DRIVE SUCCESS WITH FIVE ENTRY POINTS WHAT ARE THE BEST PRACTICES FOR ENTERPRISE-GRADE AUGMENTED INTELLIGENCE? WHAT INSIGHTS & COMPETITIVE ADVANTAGE CAN BE GAINED FROM AUGMENTED INTELLIGENCE? HOW IS AUGMENTED INTELLIGENCE DIFFERENT FROM EXISTING AI SYSTEMS? Augmented Intelligence emulates and extends human cognitive function through the pairing of humans and machines Augmented Intelligence systems find hidden meaning within all data and transform user engagement by providing the right advice, at the right time, with the right evidence across any contact point WHO IS SUCCESSFULLY USING AUGMENTED INTELLIGENCE? WHEN SHOULD AN ORGANIZATION USE AUGMENTED INTELLIGENCE SYSTEMS? WHICH BUSINESSES AND PROCESSES ARE BEST SUITED FOR AUGMENTED INTELLIGENCE? 10 HOW CAN ORGANIZATIONS GET STARTED? With three things: validated industry use cases; an open and extensible augmented intelligence software; repeatable, risk-mitigated methods that work with organizational data, analytics, and applications ©CognitiveScale | All Rights Reserved Executive Guide to AI | INTRODUCTION TO AUGMENTED INTELLIGENCE SYSTEMS Artificial Intelligence (AI) is rapidly moving from a mesmeric technology to a powerful teammate and a foundation for enterprise and consumer decision-making. IDC has projected that Worldwide Artificial Intelligence and Cognitive Systems revenues will surge past $47 billion in 2020 Every business and technology executive today needs a good understanding of Augmented Intelligence to run successful digital transformation programs and advance their careers. I FIRST BECAME EXCITED ABOUT AUGMENTED INTELLIGENCE Manoj Saxena Executive Chairman COGNITIVESCALE WAS FOUNDED ON THE BELIEF Since 2013, our team has been delivering Augmented Intelligence systems for leading global brands across financial services, commerce, retail, healthcare, and CPG companies In this guide, we provide answers to the ten most frequently asked customer questions about Augmented Intelligence to give business and technology executives important insight into this exciting new world We look forward to engaging with you on this thrilling journey with Augmented Intelligence systems If you need additional information or are interested in sharing your experiences, please send your comments to us at info@cognitivescale.com when I realized its power to make sense of all available data and to help amplify human decision-making and intelligence Much like steam engines amplified our muscles, Augmented Intelligence helps make sense of our increasingly inter-connected and amazingly complex world, and provides a new collaborative dimension to human reasoning and decision-making Akshay Sabhikhi Chief Executive Officer that we have far exceeded the human threshold for interpreting all the data we’re surrounded with, and that machine-augmented human intelligence will drive break-through levels of engagement and productivity We are building systems of insights that learn a domain based on the best available data, engage users with personalized insights, and get better and more immersive with time WHILE WORKING AT IBM WATSON I SAW the potential for moving beyond chatbots — where humans need to know exactly which questions to ask — toward systems We welcome your feedback! Matt Sanchez Founder and CTO that can emulate human cognitive abilities in software These systems will augment human expertise and build trust by providing users with the right advice, at the right time, with the right evidence across any contact point Deloitte predicts that by 2020, 95% of the top 100 largest enterprise Executive Guide to AI | software companies by revenue will have incorporated one or more ©CognitiveScale | All Rights Reserved cognitive technologies into their products 1 WHAT IS AUGMENTED INTELLIGENCE? Augmented Intelligence systems are feedback-driven, self-learning and self-assuring systems that emulate and extend human cognitive abilities in software They help make sense from messy, disparate first and third-party data, and help enterprises transform customer engagement, improve decision-making, and deploy self-learning, self-assuring business processes CHARACTERIZED BY FIVE FUNCTIONS: UNDERSTAND They derive meaning from all forms of multi-structured data and user interactions INTERPRET They represent the meaning in a deterministic and probabilistic knowledge graph based on declared, observed, and inferred entities, events, and relationships REASON INTERPRET LEARN REASON They reason over the domain-optimized interpretation in business and user context to come up with personalized advice with supporting evidence LEARN They learn continuously based on real-time and historical data, user, and system interactions UNDERSTAND ASSURE ASSURE Augmented Intelligence systems use artificial intelligence techniques such as natural language processing, spatial navigation, machine vision, logical reasoning, machine learning, and pattern recognition in sectors such as Financial Services, Healthcare, or Digital Commerce They use AI and blockchain technology to ensure ongoing compliance and governance for responsible and risk-managed use of cognitive services in the enterprise figure ©CognitiveScale | All Rights Reserved Executive Guide to AI | AI MARKET LANDSCAPE Executive Guide to AI | ©CognitiveScale | All Rights Reserved HOW IS AUGMENTED INTELLIGENCE DIFFERENT FROM EXISTING AI SYSTEMS? HUMAN vs MACHINE HUMAN & MACHINE Artificial Intelligence Spectrum (REPLACE HUMANS) (AUGMENT HUMANS) Higher intelligence Feedback driven learning Large but longer time to benefit SCRIPTING REPLACING AUGMENTING Rules based automation Task oriented Engagement & Decision oriented IMPACT SKILLS SCOPE FOCUS High maturity Limited to no learning Small but rapid benefits RULES ENGINE RULES BASED BOTS AI DIGITAL ASSISTANTS ROBOTIC PROCESS AUTOMATION COGNITIVE COMPUTING Basic “arms and legs” Repetitive actions No learning Simple “Bots” Repetitive processes No learning Conversational agents Natural Language dialog Limited learning Virtual workers Mimics human tasks Limited learning Cognitive “Digital brains” Augments decisions Learns continuously e.g Claim code verification e.g Checking claims status e.g Telephone claims inquiry e.g Fill missing information e.g Claims combat guidance Programmers App developers Programmers App developers NLP Engineer App developers Data Scientist Process Developer Data Scientists ML Engineers SMALL / TACTICAL MEDIUM / LIMITED LARGE / TRANSFORMATIVE ©CognitiveScale | All Rights Reserved cognitivescale.com figure ©CognitiveScale | All Rights Reserved Executive Guide to AI | WHO IS SUCCESSFULLY USING AUGMENTED INTELLIGENCE? Although this technology may seem far off, there are already cases that prove its relevance and exponential impact By its very definition, with more data over time, Augmented Intelligence systems will learn more, adapt quicker, and improve The stakes are high because early AI adopters will gain an early advantage Multiple global brands have already deployed Augmented Intelligence systems in 90-day sprints with the investment of a few hundred thousand dollars Current industry examples of successful Augmented Intelligence systems include: Helping patients with chronic disease get personalized insights to help with their conditions, while providing unbreakable trust and security of their personal health data Expediting time-consuming and costly procedures like billing and claims while improving the quality of patient care and reducing the likelihood of medical errors Assisting financial planners in offering personalized services based on the client’s individualized goals, capacity, and risk appetite Identifying regulatory red flags and assuring business conduct by providing an audit trail for regulators to verify compliance, while dramatically reducing costs, complexity, and time Driving up online shopper engagement and conversion by enabling online shoppers to shop the way they think, using machine cognition of their declared, observed, and inferred behaviors Executive Guide to AI | SAMPLE USE CASES FINANCIAL SERVICES RETAIL • • • • Risk analytics & regulation Customer segmentation Cross-selling & up-selling Sales & marketing campaign mgmt • Credit worthiness evaluation • Predictive inventory planning • Recommendation engines • Up-sell & cross-channel marketing • Market segmentation & targeting • Customer ROI & lifetime value HEALTHCARE & LIFE SCIENCES TRAVEL & HOSPITALITY • Real-time alerts & diagnostics • Disease identification & risk stratification • Patient triage optimization • Proactive health mgmt • Healthcare provider sentiment analysis • Aircraft scheduling • Dynamic pricing • Consumer feedback & interaction analysis • Customer complaint resolution • Traffic patterns & congestion mgmt MANUFACTURING ENERGY, FEEDSTOCK & UTILITIES • Predictive maintenance or condition monitoring • Warranty reserve estimation • Propensity to buy • Demand forecasting • Process optimization • Telematics figure ©CognitiveScale | All Rights Reserved • • • • • • Power usage analytics Seismic data processing Carbon emissions & trading Customer-specific pricing Smart grid management Energy demand & supply optimization WHEN SHOULD AN ORGANIZATION USE AUGMENTED INTELLIGENCE SYSTEMS? Augmented Intelligence systems are best used by businesses that are faced with the challenge of making complex decisions involving fast-changing customer expectations, stringent security and regulatory requirements, as well as over-burdened employees and staff AU G M E N T E D I N T E L L I G E N C E SYS T E M S H E L P DATA S C I E N T I S T S RIGHT TARGETS After decades of unfulfilled promises, Artificial Intelligence has made great strides in the past few years Planning for AI success involves starting with a small, achievable use case that is tied to an important business objective What high-value business problems should I target with AI and Machine Intelligence? Despite significant investments in big data, analytics, machine learning, and cognitive computing, businesses are struggling with three problems: What technology can help me close the gap from Data — Insights — Action — Learning? Too much data and too little insight How I acquire and build skills given the large book of work that is accumulating? RIGHT DATA What is the right first and third party data needed to solve the problem? RIGHT TECHNOLOGY Poor linkage between insights discovery & business action Scarce learnings from actions taken Organizations have an opportunity to use Augmented Intelligence systems to become cognitive businesses: those that adapt in real-time, find the hidden meaning amongst all available data, and use this knowledge to rapidly transform how to engage customers by deploying self-learning, self-assuring business processes SCALING SKILLS SPEED TO VALUE How I speed up bringing together the right data and models to deliver outcomes? TRUSTED SYSTEMS How I build transparent AI systems that are not a black box? ENTERPRISE GRADE How I build, deploy, and govern intelligent systems with the right security and trust level? figure ©CognitiveScale | All Rights Reserved Executive Guide to AI | “Those that are truly insights-driven businesses will steal $1.2 trillion per annum from their less-informed peers by 2020” Forrester Executive Guide to AI | 10 WHICH BUSINESSES & PROCESSES ARE BEST SUITED FOR AUGMENTED INTELLIGENCE? While chatbots and robotic process automation have been key trends in the recent technology boom, decision-making efforts are still safeguarded by humans The idea of building human-like intelligence in the form of autonomous technology to replace a human sounds appealing, but, along with psychological resistance, it may impose business and regulatory risks as well Augmented Intelligence systems help connect people and computers to collectively interpret fast-changing big data and business conditions in real-time to act more intelligently than any person, group, or computer has ever done before Customer Engagement Augmented Intelligence systems focus on leveraging both human decision-making expertise alongside powerful computing ability The goal is to make sense of the structured and unstructured data around us and serve up personalized insights and advice at the right time, in the right context, and with supporting evidence improve customer acquisition, engagement and loyalty Compliance & Risk Service & Support radically reduce cost, time & effort around compliance delight customers while reducing cost of support SALES TEAMS COMPLIANCE TEAMS SUPPORT TEAMS Human Capital Product Dev improve talent lifecycle management HR EXECS ENGAGE AI Intelligent Customer Engagement COGNITIVE BUSINESS fuel conceptual product & services breakthroughs PRODUCT TEAMS AMPLIFY AI Augmented Process Intelligence Supply Chain SUPPLY TEAMS FINANCE TEAMS Customer Acquisition Revenue Management Customer Engagement Risk and Compliance Customer Support Business Productivity figure Finance review and manage financial position of the company in real time manage supplier risk, improve sourcing costs, business agility ©CognitiveScale | All Rights Reserved figure The ultimate goal of Augmented Intelligence systems is to augment the expertise and experience of any user from a CEO to a customer to a field worker by pairing them with machines that continually access, interpret, apply, and learn exponentially from the meaning hidden within ever-exploding data in all forms ©CognitiveScale | All Rights Reserved Executive Guide to AI | 11 WHY ARE AUGMENTED INTELLIGENCE SYSTEMS SO EFFECTIVE? We are now on the threshold of a third generation of computing: Augmented Intelligence In this new era, systems are data-driven, sense-making, insight-extracting, and continuously learning While most Artificial Intelligence approaches focus on replacing humans, Augmented Intelligence from CognitiveScale emulates and extends human cognitive function through the pairing of people and machines Augmented Intelligence has the potential to re-imagine every business process, user experience, and business model These systems emulate human cognitive processes in a computerized model and learn with every user and data interaction as opposed to performing rules-based calculations like the instruction-driven computers of today Businesses powered by Augmented Intelligence systems share these key attributes: • Discover and learn from hidden meaning in data & user interactions • Continuously learn, evolve, and improve with time • Build and test new user and process engagement capabilities • Drive new business processes and business model innovation As AI becomes more pervasive in business, it needs to be properly programmed to build trust and mitigate selection bias To trust computer decisions, people need to know how an AI system arrives at its conclusions and recommendations Right now most AI techniques, including deep learning, poorly on that front CognitiveScale’s Cortex5 software has been designed to be transparent to better explain why it’s telling you to what it’s recommending Some other attributes to AI systems for the enterprise are illustrated in figure While most Artificial Intelligence approaches focus on replacing humans, Augmented Intelligence from CognitiveScale emulates and extends human cognitive function through the pairing of people and machines Executive Guide to AI | 12 ©CognitiveScale | All Rights Reserved ENTERPRISE GRADE AI SOFTWARE Enterprise customers need Augmented Intelligence solutions that are: CONTINUOUSLY LEARNING EXPLAINABLE PERSONALIZED INDUSTRY OPTIMIZED Learns through additional data and user feedback AI can explain decisions and actions to human users AI tailors experiences to drive engagement and actions Pre-built accelerators which understand the nuances and specifics of your industry figure ©CognitiveScale | All Rights Reserved Executive Guide to AI | 13 HOW HOW DOES A BUSINESS DRIVE SUCCESS WITH FIVE ENTRY POINTS? PEOPLE Personalize human engagement PROCESS Drive operational efficiency at scale PRODUCT Build smarter digital and physical products DATA Get insights and learn from all available data figure KNOWLEDGE Harness machine accumulated knowledge Executive Guide to AI | 14 ©CognitiveScale | All Rights Reserved WHAT ARE THE BEST PRACTICES FOR ENTERPRISE-GRADE AUGMENTED INTELLIGENCE? Phased approach with 90-day sprints and a few hundred thousand dollar investment Organizations want an Augmented Intelligence system specific to their industry; a tailored cloud to meet their needs The right AI partner will work with a client’s existing data infrastructure to build a cognitive cloud specific to industry, whether it’s Financial Services, Healthcare, Telecom, Media, Commerce, etc CAPABILITY REDESIGN PROCESS REDESIGN Transform to a Cognitive Business USER ENGAGEMENT Augmented Process Intelligence COGNITIVE SANDBOX USE CASES / SOURCES OF VALUE Clearly articulate the business need and projected impact Outline a clear vision of how the business will use the solution Augmented User Engagement Augmented Insights focus Identify target use case pattern Gather data from internal systems and external sources Advise the user through personalized actionable guidance Assure the appropriate operational controls for evidence-based insights Act on the advice through API’s or reference apps Optimize consumption of resources and policies for use across the network Scale adaptive business insights and processes Learn from feedback models, and advice that is accepted/refuted Connect and discover insights and patterns to drive initial use case outcomes CHANGE MANAGEMENT GOVERNANCE figure 10 ©CognitiveScale | All Rights Reserved Executive Guide to AI | 15 WHAT INSIGHTS & COMPETITIVE ADVANTAGE CAN BE GAINED FROM AUGMENTED INTELLIGENCE? Driving success with Augmented Intelligence systems means taking advantage of the ability to interpret multi-structured big data and declared, observed, and inferred user behaviors to weave knowledge and learning across the enterprise Successful companies have deployed Augmented Intelligence to drive: FINANCIAL SERVICES Augmented Intelligence systems transform how financial institutions engage their clients through the entire life cycle, from on-boarding and advisory services to on-going risk management and customer support They also help improve financial advisor productivity by 8-10x and drive back office business conduct assurance and regulatory compliance through machine intelligence and blockchain-powered back office processes • $36 million in new efficiencies • 23% conversion lift DIGITAL COMMERCE • 31% decrease in trouble tickets Augmented Intelligence systems allo w shoppers to shop how they think based on context, event, occasion, and location In addition, they build a continuously self-learning Profile-of-One to help shoppers receive personalized shopping advice and hyper-personalized offers based on declared, observed, and inferred user behaviors which, in turn, drives large jumps in conversion and engagement rates • 50% faster time to compliance awareness HEALTHCARE ENGAGE AI AMPLIFY AI Interact with end users at the edge of your business by delivering highly personalized, intelligent, and contextual insights at the right time and right place with clear evidence and recommended action Boost employee expertise, operational productivity, and compliance by deploying AI and Blockchain driven business processes that get smarter and more useful with time figure 11 Executive Guide to AI | 16 ©CognitiveScale | All Rights Reserved Precision medicine must go beyond the clinic Augmented Intelligence systems in Healthcare analyze an individual’s environment and lifestyle patterns to positively change behavior and deliver targeted health-related interventions and recommendations in the places where people spend most of their time — outside of the hospital As new data and user feedback is submitted, the system’s recommendations adapt and become more personalized, ultimately driving lower hospital utilization, lower costs, and higher quality scores MAKE AI WORK FOR YOUR INDUSTRY figure 12 Executive Guide to AI | 17 10 HOW CAN ORGANIZATIONS GET STARTED? WEB INDUSTRY OPTIMIZED AI SOLUTIONS MOBILE CHATBOT VOICE AR/VR Many organizations are aware of the benefits of AI and machine learning technologies, but they struggle to identify a relevant and impactful use case EXPERIENCES CognitiveScale’s Industry AI catalogs provide a list of AI-powered products focused on high-value use cases relevant to industry and domain, with supporting data and models to accelerate time to value AUGMENTED INTELLIGENCE SOFTWARE CognitiveScale Cortex5 is the world’s first industry-optimized Augmented Intelligence software Augmented Intelligence technology delivers systems of intelligent engagement that replicate human-like cognitive abilities in software such as memory and sequencing, perception, anticipation, problem solving, and decision making Cortex5 software dramatically simplifies and democratizes the design, development, delivery, and management of enterprise grade AI systems that weave knowledge and learning across the enterprise – from the front office to back office, to mission critical core functions Whether you are looking for AI solutions built for you, or the software to build COGNITIVE PROCESS ACCELERATORS Skills, Models, Datasets, and other AI building blocks CORTEX COGNITIVE PLATFORM Environment, tooling and libraries for cognitive process lifecycle management NEXT GENERATION INFRASTRUCTURE Customer’s enterprise infrastructure and tooling ENGAGE AI AMPLIFY AI 3RD PARTY Intelligent Customer Engagement Augmented Process Intelligence Partner Processes & Applications CORTEX MARKETPLACE Share & control industry & domain AI accelerators STUDIO Build & compose AI systems FABRIC Simplify data & compute access X-RAI Govern & assure AI performance YOUR ENTERPRISE PLATFORM Public, Private, & Hybrid Cloud Multi-structured Big Data Data Science Toolkits IoT Network & Services Blockchain Services your own solutions, CognitiveScale delivers AI that improves business outcomes in areas like customer acquisition and retention, connected experiences, decision support, and exception handling figure 13 10-10-10 METHODOLOGY CORTEX CognitiveScale’s proven 10-10-10 method helps fast-track time to value in a hybrid Application Developers and Data Scientists create their own AI solutions and integrate industry cognitive cloud environment It sets up a secure cognitive cloud in 10 them into their software development life cycle (SDLC), building those solutions on hours, models and customizes the first cognitive system using an organization Cortex5 and owning the subsequent IP data in 10 days, and goes live within 10 weeks Executive Guide to AI | 18 ©CognitiveScale | All Rights Reserved AI SHOULDN’T MEAN “ARTIFICIALLY INFLATED” Make AI Work for Your Industry TRUSTED AI that is transparent, explainable, and audit-able It augments human experience and builds trust by providing users with the right advice, at the right time, with the right evidence OPTIMIZED No science projects Our AI products are optimized to high-value problem domains in your industry and deliver AI powered systems compliant with your industry regulations and controls ENTERPRISE GRADE Software that is both open and extensible, and designed to scale massively to support the most demanding enterprise workloads spread across private, public, and hybrid cloud infrastructure PROVEN Used by multiple global Fortune 1000 brands, including the world’s largest department store, the world’s largest cancer center, the world’s largest non-profit health system, and the world’s most valuable bank SEAMLESS API based micro-services architecture that extends existing Hadoop, Apache Spark, and data warehouse infrastructures to deliver intelligent advice and insights that can be woven into new or existing processes and applications RAPID The CognitiveScale 10-10-10 Method helps businesses model their first cognitive system in 10 hours, customize it using their own data in 10 days, and go live within 10 weeks CognitiveScale’s Augmented Intelligence software helps businesses apply Artificial Intelligence and Blockchain technology to solve complex business problems at scale for financial services, healthcare, and digital commerce markets The company’s award-winning software is being used by global leaders such as USAA, Morgan Stanley, NBC, JPMorgan Chase, ExxonMobil, and MD Anderson to increase user engagement, improve decision-making, and deploy self-learning and self-assuring business processes Headquartered in Austin, Texas, CognitiveScale has offices in New York, London, Hyderabad, Executiveand Guide to AI | 19 India, and is funded by Norwest Venture Partners, Intel Capital, IBM Watson, M12, and USAA Executive Guide to AI | 20 ©CognitiveScale | All Rights Reserved | v6 ... Rights Reserved Executive Guide to AI | AI MARKET LANDSCAPE Executive Guide to AI | ©CognitiveScale | All Rights Reserved HOW IS AUGMENTED INTELLIGENCE DIFFERENT FROM EXISTING AI SYSTEMS? HUMAN... retail, healthcare, and CPG companies In this guide, we provide answers to the ten most frequently asked customer questions about Augmented Intelligence to give business and technology executives... CEO, Microsoft - Ginny Rometty CEO, IBM Executive Guide to AI | CONTENT WHAT IS AUGMENTED INTELLIGENCE? Augmented Intelligence is a subset of Artificial Intelligence technology that emulates and